Balance sheets are not meant to show earnings the way that a profit and loss statement (P&L) does. Instead, balance sheets are meant to balance out, typically by following the accounting equation ...

When understanding a company report, we need to know the meaning behind all the income, expense, and profit figures. Discover more with The Motley Fool UK.

Also called a Profit and Loss (P&L) Statement or a statement of revenue and expense, the income statement is one of three major documents, along with the cash flow statement and the balance sheet ...